Mumbai University > MECH > Sem 7 > Operations Research

Marks: 5 M

Year: Dec 2013, May 2014

Operations Research can be regarded as a tool which is utilized to increase the effectiveness of management decisions, as follows:

1. Better control: Top management of companies find it expensive to provide executive supervision for routine decisions. OR enables executives to devote their attention to more important matters, like production scheduling and inventory control.
2. Better co-ordination: in a scenario where there is a limitation imposed on manufacturing capability, an OR approach helps in co-ordinating marketing decisions with production.
3. Better system: OR is used to analyze critical decisions such as where to establish a new factory or warehouse. As a result, application of an OR generated solution often improves profits.
4. Better decisions: OR models most often generate solutions to problems that aid in decision making, especially in cases where it is difficult to manually consider and analyze all the important factors in the system.